MasterCard® PayPass™ and VeriFone Announce First Ever ‘Tap & Go™’ Payments in Taxis
MasterCard PayPass Continues to Lead the Way into New Consumer Categories with the Speed and Convenience of Contactless Payment
Philadelphia, PA and Purchase, NY – November 15, 2006–MasterCard Worldwide and VeriFone Holdings (NYSE: PAY) today announced the first U.S. acceptance of MasterCard® PayPass™ “Tap & Go™” contactless payments in taxicabs, making life easier for busy consumers in one of the country’s largest, fastest-paced cities. The contactless acceptance is expected to roll out to all taxis licensed by the Philadelphia Parking Authority (PPA).
The PayPass roll out is part of a PPA project contracted with VeriFone Transportation Systems, a joint venture of VeriFone and Taxitronic, Inc., to equip city taxis with systems providing sophisticated networked fleet management capabilities and consumer services including wireless credit and debit payment transactions, navigation, scheduling, trip logs, lost & found tracking, and panic button alerts.
VeriFone estimates that MasterCard PayPass cuts approximately 45 seconds off the transaction time in taxis when compared to cash, and 15 seconds when compared to swiping a traditional payment card. Payment card acceptance in cabs is growing throughout the U.S., and this project will ultimately ensure contactless and traditional card acceptance in all Philadelphia taxis.
“MasterCard PayPass contactless payments provide taxicab passengers with a simpler way to pay,” said T.J. Sharkey, Group Head, National Accounts, U.S. Commerce Development, MasterCard Worldwide. “PayPass is a perfect solution for passengers who are in a hurry and want to get in and out of taxis as quickly as possible without having to fumble for cash or coins, or wait for drivers to make change.”
To use PayPass in participating Philadelphia taxis, passengers simply tap their PayPass-enabled card or device on a contactless reader attached to a VeriFone Omni 7000 payment system located in the back seat of the taxi. The customer-facing payment system is networked to another VeriFone system, the MX870, a multimedia device located in the driver cab that provides routing, navigation and other information.
With no signature required for transactions under $25, PayPass offers taxicab passengers a fast and convenient alternative to cash and eliminates the need for consumers to search for cash or coins, or hand over their card to the driver. When using MasterCard PayPass on the VeriFone Omni 7000 system, passengers also have the option to enter the tip amount, as well as sign electronically for transactions over $25.
“The VeriFone Omni 7000 is the same device used in many retail stores and will be very familiar to consumers,” said Bill Atkinson, VeriFone executive vice president. “Philadelphia taxis with MasterCard PayPass contactless payments will provide passengers with a convenient and interactive riding experience unlike any other in the country.”
How MasterCard PayPass Works MasterCard PayPass uses radio frequency technology to securely transmit payment details wirelessly between the PayPass device and the merchant’s terminal. In the Philadelphia taxi implementation, the transaction is then transmitted via secured cellular signal for processing through the VeriFone Transportation System Gateway to the MasterCard network for clearing and settlement. PayPass technology can be found in a number of different forms. PayPass cards include magnetic stripe technology, so the cards can also be used in the traditional manner anywhere MasterCard is accepted around the world. PayPass technology can also be used in a number of devices, such as a convenient payment tag that fits on a key chain for easy access, and in mobile phones.
PayPass allows financial institutions to offer customers more payment options and it helps increase GDV for issuers by attracting payments away from cash, increasing accountholder loyalty for their card programs and opening up new acceptance opportunities for “quick pay” environments. In the U.S., Advanta, Chase, Citi, Citizens Financial Group, Inc., GE Consumer Finance, HSBC, KeyBank, MBNA and Peoples Bank of Paris, Texas have all begun offering MasterCard PayPass-enhanced payment programs to their accountholders. PayPass technology enhances any payment account it is added to–be it a credit, debit, pre-paid/stored-value, co-brand, small business or private label account.
About MasterCard PayPass
MasterCard PayPass is ideal for traditional cash-heavy environments where speed is essential, and has led the way in bringing contactless technology to consumer categories such as quick serve restaurants, drug stores, gas stations, vending machines, convenience stores, sports arenas, movie theaters, transit systems and parking garages. There are currently more than 11 million PayPass cards and devices in the market, and PayPass is currently accepted globally at 36,000 merchant locations, including participating 7-Eleven, CVS, McDonald’s, Regal Entertainment Group theaters and many others. PayPass is also accepted at numerous National Football League and Major League Baseball stadiums. For more information about MasterCard PayPass and a full list of participating merchants, visit http://www.mastercard.com/paypass.
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes close to 14 billion payments each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard Worldwide serves consumers and businesses in more than 210 countries and territories. For more information go to http://www.mastercardworldwide.com.
About VeriFone Holdings, Inc.
VeriFone Holdings, Inc. (“VeriFone”) (NYSE: PAY; TASE: PAY) is the global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.
About VeriFone Transportation Systems
VeriFone Transportation Systems is a joint venture between VeriFone Holdings, Inc. (NYSE: PAY), and TaxiTronic, Inc., to provide the next generation in mobile payment and transportation automation solutions. VeriFone Transportation Systems delivers wireless payment, voice guided navigation, dispatch, text messaging and real-time information delivery capabilities for transportation fleets.